Guam § 121104 - Redemption of Certificates.

§ 121104. Redemption of Certificates.

All investment certificates hereafter issued shall be subject to

redemption, either in whole or part, at the option of the association at any

time after the issuance thereof, by giving the holder at least thirty (30)

days notice of such intended redemption; provided, however, that an

association may provide that such certificates shall not be subject to

redemption for an initial period after the issuance thereof, which initial

period shall not exceed one (1) year. The redemption price of all

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Investment certificates shall be the value thereof at the date fixed for

redemption, if the date fixed for redemption is not a date on which

interest is to be paid or credited, interest accrued from the last such date

shall be pro-rated and shall be based on the rate of return for the current

period if such rate shall have been determined prior to the date fixed for

such retirement, and if not, shall be based on the rate of return

determined for the latest previous period for which such rate shall have

been determined. On or after the date fixed for redemption, as stated in

the notice of redemption, each holder of an investment certificate called

for redemption shall surrender his certificate properly endorsed to the

association, and shall thereupon be entitled to receive payment of the

redemption price of such certificate, or of the Portion thereof to be

redeemed; and in case a certificate shall be redeemed in part, to receive a

new certificate representing the unredeemed part thereof. If such notice

of intended redemption shall have been duly given and if on or before the

date fixed for such redemption funds necessary for such redemption shall

be and continue available therefor, then, notwithstanding that any

certificate called for redemption in whole or in part shall not have been

surrendered, the interest thereon, with respect to the amount called for

redemption, shall cease to accrue after the date fixed for such

redemption, and all rights of the holder in respect of the amount so called

for redemption shall forthwith after such redemption date cease and

determine, except only the right of the holder to receive the redemption

price without interest after the date fixed for redemption. In all cases the

notice of redemption shall expressly state that interest will cease on the

date fixed for redemption.